NIFTY WEEKLY

NIFTY WEEKLY
On the weekly charts the nifty has given one more doji having a low of 4904 which now will act as supports in the coming week and a high of 5036 which will act as resistance.
The nifty has once gone in a consolidation mode and the supports and resistance for the coming week are the same as last week. The supports being 4937-4904-4880-4735 the support at 4735 is a strong support and the current medium uptrend will be in danger if nifty closes below 4735. The resistances are at 5000-5030-5075
OI DATA
It’s hardly one day in to the new series and the amount of OI on either side in nifty is surprising
1> 5000 calls already have more than 32 lacs open positions and the calls above it right up to 5300 too have huge open positions indicating good amount of call writing in the region of 5000-5300
2> On the puts side 4900-4800 each have more than 40 lac open positions and that to so early in the series, the amount of OI suggests significant put writing of 4900-4800 puts

Going by the OI data the nifty is bound in a tight range of 4800-5100 and traders who are best at trading the trends will have a hard time as nifty most probably will be range bound in the coming days, maybe the markets are waiting for a trigger ( Q2 results )
Volume data
In the nifty 50 cash segment last week
1> The average volume on advancing days was 8149 CR which constituted 47% of total traded volume.
2> The average volume on declining days was 8970 CR which constituted 53% of total traded volume.
3> The total volume traded in the last week was 34K CR which was less than the 45k odd CR traded the week before
Above data indicates tiredness in the nifty but not any significant weakness hence its better to avoid shorting in anticipation of weakness after seeing the weekly doji.
After seeing the OI data it becomes clear that there is good amount of support at 4900-4800 and hence any dip I the region of 4900-4850 can be bought into to create short term longs for a target of 5000-5050-5100. Please take care that dip should not be accompanied by decrease in OI of 4800-4900 puts. To see live OI please click here OPTIONS CHAIN
If the nifty goes to 5100-5150 in the next week it is better to take some profits from short term long positions.
My personal view is that nifty can take a dip towards 4800 levels and then if that level survives the we could be headed for higher targets of 5100.